It may be because I am not a native English speaker, but to me the word innovation also carry the idea that the new thing that was created was novel, something beyond a mere evolutionary improvement of the existing.
Given that definition, it drives me crazy to hear Microsoft talk about innovation. The main issue that I have with that is that they seem to equate innovation with work:
Yes, they do some really cool stuff, but do they really need to use the word innovation for everything? Microsoft is doing a lot of things that I would consider as hard-code innovation, the problem is that they apply this word to anything from spell checking to a new icon to rounded corner on a grid.